Delhi Government's Debt Increased By 7% In 4 Years: Audit Report

According to a CAG audit report presented to the Assembly on Tuesday, despite maintaining a revenue surplus, the Delhi government’s debt climbed by about 7% in the four years leading up to 2019–20.

According to the report, the debt climbed by 2,268.93 crores (6.98%) from 32,497.91 crores at the start of 2015–16 to 34,766.84 crore at the end of 2019–20.

Manish Sisodia, the deputy chief minister, delivered the Comptroller and Auditor General (CAG) report of 2021 on public finances for the year ending March 2020 in front of the Assembly.

The audit report on state finances offers a critical analysis of the Government of the NCT of Delhi’s annual accounts and the operation of Public Sector Undertakings for the fiscal year ending 31 March 2020.

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According to the report, the Delhi government’s revenue surplus for 2019–20 was $7,499 crore, showing that the government’s income collections were enough to cover its revenue expenditure.

Because the federal government is covering the workers’ pension responsibilities, the Delhi government has been able to maintain a revenue surplus, it was noted.

It was said that the Ministry of Home Affairs, Government of India, also pays for Delhi Police expenses.

The revenue received increased by 4,023 crores (9.33%) over the previous year. About 79.90% of the government’s income collections in the 2019–20 fiscal year came from internal resources, while the remaining 20.10% came from aid grants.

In 2019–20, 77.58% of NCTD’s total revenue collections were derived from its taxes, down from 86.36% in 2015–16.

Government spending on subsidies climbed from 1.86 billion in 2015-16 to 3.59 billion in 2019-20. (92.38 percent).

According to the data, spending on subsidies climbed by 41.85% in 2019–20 over the previous year.

Financial support for local organizations and others went from 15,087.22 crores in 2018–19 to 16,232.97 crores in 2019–20, an increase of 7.59%.

Delhi Metro Rail Corporation Ltd. investments in 2019–20 increased by 150 crores over the prior year.

The CAG report said that although the government paid interest at an average rate of 8.14 percent on its borrowings during 2019–20, the return on investment was just 0.08 percent.

The government of Delhi lacks the authority to obtain loans on the open market. According to the report, the Government of India’s loans and advances make up its debt receipts.